Scott+Scott LLP Files Shareholder Class Action Against Eaton Corporation
NEW YORK, Aug 3, 2012 (GlobeNewswire via COMTEX) -- Notice is hereby given that on August 3, 2012, Scott+Scott LLP filed a securities class action complaint against Eaton Corporation ("Eaton" or the "Company") ETN +0.61% , the Company's President and Chief Executive Officer ("CEO"), and certain of its executives in the United States District Court for the Northern District of Ohio. The lawsuit alleges violations of the Securities Exchange Act of 1934 and was filed on behalf of all purchasers of common stock of Eaton between August 9, 2009 and June 4, 2012, inclusive (the "Class Period").
In general, the complaint alleges that Eaton issued false and misleading statements concerning its executives' involvement in a scheme to improperly influence a Mississippi state court judge in litigation the Company had initiated against rival manufacturer Frisby Aerospace, Inc. (the "Eaton-Frisby Litigation"). More specifically, the complaint alleges that Eaton managers knew, but repeatedly caused Eaton to deny, that Eaton had engaged Mississippi attorney Ed Peters, a politically connected go-between, to improperly influence Bobby DeLaughter, the presiding judge in the Eaton-Frisby Litigation. DeLaughter later recused himself from the Eaton case when he became embroiled in an unrelated lawsuit involving high-powered Mississippi attorney Richard Scruggs. DeLaughter was sentenced to 18 months in prison after admitting he lied to FBI agents about conversations he had with Peters in the Scruggs case. Judge Swan Yerger, who replaced Judge DeLaughter, subsequently dismissed Eaton's lawsuit against Frisby after deciding there was "clear and convincing" evidence that Eaton had hired Peters to secretly influence DeLaughter.
On May 31, 2012, Eaton's CEO and senior executives filed affidavits with the court, which admitted that Eaton had failed to turn over records showing that Eaton had improperly, and possibly illegally, attempted to influence Judge DeLaughter. On this news, Eaton shares declined $3.10, or 7.2%, to close at $40.24 on June 1, 2012.
(800) 404-7770, (860) 537-5537, or visit the Scott+Scott website, http://www.scott-scott.com/
) for more information. There is no cost or fee to you.
Scott+Scott is one of the leading class action law firms in the United States, with offices in New York, Connecticut, Ohio and California. The firm has been directly responsible for the recovery of hundreds of millions of dollars on behalf of its clients through the prosecution of major securities, antitrust and employee retirement plan class action lawsuits. The firm represents pension funds, foundations, individuals and other entities worldwide.
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SOURCE: Scott+Scott LLP
Posted August 6, 2012 - 7:55 am